NEW YORK - GameStop Corp . Cl A (NYSE:GME) experienced a second consecutive day of gains on Wednesday, climbing 2.87% to close at $13.27. This uptick occurred in a broader market where the S&P 500 Index edged up by 0.16% to settle at 4,502.88, and the Dow Jones Industrial Average saw a 0.47% increase to end at 34,991.21.
Despite the recent gains, GameStop's stock is notably below its 52-week high of $28.70, which was recorded on November 18th, marking a $15.43 difference from its current price.
The trading volume for GameStop on Wednesday was reported at 4.1 million shares, surpassing its 50-day average trading volume of 3.4 million shares.
In comparison to GameStop's performance, stocks of some competitors in the technology and retail sectors showed mixed results. Apple Inc. (NASDAQ:AAPL) saw a modest increase of 0.30%, closing at $188.01, while AT&T Inc. (NYSE:T) rose by 0.83% to $15.76. Best Buy Co. Inc. (NYSE:NYSE:BBY), another retailer, had a notable gain of 3.61%, ending the day at $68.88.
The positive movement in GameStop's stock comes amidst a general uptick in the market, with investors possibly reacting to various macroeconomic factors influencing market sentiment and individual stock performances within the sector.
InvestingPro Insights
As we delve deeper into GameStop's financials, InvestingPro data reveals an adjusted market cap of $4050M. The P/E ratio stands at -40.40, indicating the stock's price relative to its earnings. The company's revenue for the last twelve months as of Q2 2024 was $5813.7M, with a gross profit of $1384.6M, which translates to a gross profit margin of 23.82%. Despite these figures, the company has not been profitable over the last twelve months.
InvestingPro Tips highlight that GameStop holds more cash than debt on its balance sheet and its liquid assets exceed short term obligations, which signifies a healthy financial position. However, the stock price has fallen significantly over the last year and the company does not pay dividends to shareholders. Analysts also do not anticipate the company will be profitable this year.
For more in-depth insights and tips, consider exploring the InvestingPro product that includes additional tips. Currently, there are 12 additional tips listed for GameStop on InvestingPro.
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